Investors fled for the exits in droves in October as soaring market interest rates put asset prices of all kinds under ever more intense pressure. Our latest FFI registered the largest outflows from equity funds in over a year, with record selling of mixed asset funds and ongoing withdrawals from property funds. Fixed income funds suffered further outflows too, though there are signs of buying interest following the dramatic bond-market repricing of recent months. Meanwhile, safe haven money market funds enjoyed their third best month on records as investors looked for a low-risk, high-yield home for their cash.
Key highlights from this month's FFI:
- Equity funds saw largest outflows in October 2023 since September 2022 mini-budget chaos
- UK-focused equity funds hit hardest, but income funds, European equities and sector funds also suffered large outflows
- ESG equities saw their sixth consecutive month of net selling as ESG hype fades
- Global equity funds and emerging markets bucked the selling trend - enjoying inflows
- Fixed income funds shed capital as yields continued to surge – but buyers are hovering
- Mixed asset funds saw record outflows
- Safe-haven money markets saw their third best month of inflows on record